Entity/Use Code in Customer Record & Transactions in Netsuite

Are you using Avalara AvaTax to calculate tax in Netsuite? Avalara AvaTax automatically calculates sales and use tax for transactions, invoices, and other activity powered by NetSuite. Avatax is a comprehensive cloud-based tax calculation. I shared how to set a Customer to be Tax Exempt in U.S. and Canada in Avalara account in the previous blog. In this blog, I will share how to exempt customers from sales tax in NetSuite with an entity use code. 

Often, you encounter the issue to exempt customers from sales tax in NetSuite with an entity use code. You can add an entity use code to customer records in NetSuite. You can create an AvaTax tax code to assign to customers in NetSuite. And then, add an entity use code to customer records in NetSuite. AvaTax exempts the transaction as long as the code is valid for the region where the transaction takes place.  

1. In NetSuite, go to Avalara > Setup > Configure Avalara 
   
   
   
   
   
2. Go to the General tab, select Enable Entity/Use Code. 
   
   
   
   
   
   
3. Go to Avalara > Setup > Entity/Use Code. Review the Entity/Use Code List.
   
   
   
   
   
4. Open a customer record in edit mode. 
5. Select the Address tab. 
6. Select an entity use code from the drop-down menu.
   
    
   1. • Please reference Avalara Exemption reason matrix for US states and territories. 
      • Please reference Avalara Exemption reason matrix for Canadian provinces. 

If you want to learn more about how Netsuite and AvaTax can help your distribution business, contact Concentrus today to discuss your needs. 

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